Preisabschöpfung
Preisabschöpfung is a German term that translates to price skimming or price gouging depending on the context. In economic terms, it refers to the practice of setting a high initial price for a new product or service and then gradually lowering it over time. This strategy is often employed for innovative products or those with little initial competition, allowing a company to maximize profits from early adopters who are willing to pay a premium. As the market matures, competition increases, or production costs decrease, the price is reduced to attract a broader customer base.
The term can also be used in a more negative sense, referring to price gouging. This occurs
In the context of government policy, Preisabschöpfung can also refer to measures taken to limit excessive price